Dunedin people from all walks of life are struggling to afford basic living expenses and many are using "buy now, pay later" schemes for back-to-school costs.
Social agencies are concerned that this will result in families being caught in debt cycles and are urging people to reach out to MSD and schools for help.
St Vincent de Paul foodbank distributed more than 200 Christmas food parcels, delivering half of them to homes.
Presbyterian Support Otago Family Works foodbank reported "exceptionally high" demand over Christmas-New Year, providing 727 food parcels from December 1 to 23.
In 2022, the total number of food parcels provided was 4462, up from 3461 in 2021 — an increase of 29%.
Family Works director Carmen Batchelor said the organisation was expecting to be "extremely busy" from the end of January through February and March, as this was when credit cards, After Pay and other debts people had incurred to cover Christmas the holiday period and back-to-school costs kicked in.
The ongoing ripples from the Covid-19 pandemic, coupled with huge price increases on household costs — rent, mortgages and power bills — and essential food items, meant that more working people, individuals and families, were needing to access the food bank, Ms Batchelor said.
"The individuals and families we see from all walks of life simply do not have enough money to meet basic essential expenses and any unplanned extra expense, such as having to buy a new car to get to work, or purchasing school uniforms creates significant financial distress," she said.
After Pay schemes and other debt could quickly mount up and become unaffordable.
"We would encourage people to come and see us about this, because debt doesn’t go away without a plan, and our team can help with this," Ms Batchelor said.
St Vincent de Paul centre and pastoral co-ordinator Sarah Strang said the organisation’s foodbank distributed more than 200 Christmas food parcels, delivering half of them to homes. The foodbank was closed over Christmas.
"People are telling us the cost of food is an issue, and so is housing — we are seeing more people living in vans and cars," Ms Strang said.
Back to school was a stressful time for families, although MSD did provide help with uniforms and stationery for beneficiaries and whanau on a low income, by way of an advance payment, which had to be paid back, Ms Strang said.
"I’m hearing from clients that they are using buy now pay later schemes for school essentials which I would discourage, and I’d suggest they contact an agency to discuss more sustainable options," Ms Strang said.
Ms Batchelor said PSO Family Works financial mentors and social workers were connected with many families deeply concerned about the affordability of school uniforms and other costs.
"Some parents have to spend $700 to $1000 on school uniforms, and there is a requirement from many schools to buy devices."
Both agencies urged people to reach out for help, with funds and sponsorships available, including the JR McKenzie fund, no interest Good Loans (up to $7000 for essentials), and Variety Children’s Charity providing support.
DONATIONS NEEDED
Family Works
Due to exceptionally high demand, the PSO Family Works foodbank stocks are extremely low on all core staple items such as tinned foods, vegetables, fruit, cereals, muesli bars, eggs and toilet paper.
Sadly, donations for the Christmas Can Appeal were down on previous years as people were constrained by rising costs.
Donations of goods or money can be made in person at 407 Moray Pl, or online at psotago.org.nz
St Vincent de Paul
The foodbank has adequate cans but is buying in most other items.
Donations of fresh vegetables, toilet paper, shampoo, deodorant, washing powder, rice, cereal and spreads would be welcome.
Ms Strang urged people to try to shop at the George St store as the foodbank is funded largely through shop sales, which have halved while the roadworks have been ongoing.
